Study examines data center impact on Northern Virginia home values
A George Mason University study found that data centers in Northern Virginia did not depress nearby home values, and in some cases, were associated with higher prices due to existing infrastructure. However, residents and advocacy groups like the Coalition to Protect Prince William County argue that property values are an incomplete measure, citing concerns over noise, transmission lines, water use, and increased energy costs.
A new analysis by George Mason University’s Center for Regional Analysis indicates that homes located closer to data centers in Northern Virginia, a major data center hub, sold for higher prices on average, not lower. The report, which examined 2023 BrightMLS home sales against data center locations, found no statistical evidence that proximity to data centers reduces housing values.
Terry L. Clower, director of the Center for Regional Analysis and a co-author, cautioned against overinterpreting these findings, suggesting that data centers locate where valuable infrastructure already exists, rather than directly boosting home values. Real-estate broker Erik Leland echoed this, noting that tax revenue from data centers might benefit local governments, but the projects can also distort land markets, as seen in Hillsboro, Oregon.
However, opponents argue that property values don't capture the full impact. Elena Schlossberg, executive director of the Coalition to Protect Prince William County, highlighted concerns about noise, vibrations, and extensive transmission lines that spread across communities, affecting residents in areas like Haymarket, Virginia. She also questioned the study's relevance during a national housing shortage.
Residents also raise concerns about increased energy demand and water use. Dominion Energy Virginia, however, states that data centers pay the full cost of their power, with their share of transmission costs increasing while residential shares decline. The article also cites examples of opposition elsewhere, including a proposed 40,000-acre data center project in Utah, a $4 billion facility in Ohio facing a homeowner lawsuit over rezoning, and Florida legislation aimed at protecting residents from AI-related power costs.